Helpful hints for filing

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1 Helpful hints f filing Oxygen and oxygen-related equipment Overview The following infmation describes the Durable Medical Equipment Medicare Administrative Contracts (DME MAC) medical policy f oxygen and oxygen-related equipment. Coding, coverage, payment, and documentation guidelines are listed on the following pages. This is to be used only as a guide. F an item to be covered by Medicare, the following conditions apply: (1) item must be eligible f a defined Medicare benefit categy, (2) item must be reasonable and necessary f the diagnosis treatment of illness injury to improve the functioning of a malfmed body member, and (3) the item must meet all applicable Medicare statuty and regulaty requirements. Please refer to your Supplier Manual contact your DME MAC medical direct provider helpline f specific instructions. Definitions Arterial Blood Gas (ABG) An ABG is the direct measurement of the partial pressure of gases, including oxygen (noted as PO 2 ) in arterial blood repted in mm Hg. Certificate of Medical Necessity (CMN) DME Fm (CMS Oxygen) is required to certify the need f home oxygen. Hypoxia The deficiency of oxygen in tissue (noted as PO 2 ). Hypoxemia The deficiency of oxygen in arterial blood (noted as PaO 2 ). Oximetry An oximetry test is the indirect measurement of arterial oxygen saturation using an oximeter sens on the ear finger. The saturation is repted as a percent. Groups I, II, III Medicare determines coverage of home oxygen based on the patient s blood gas test results. Results are categized into three defined groups shown in the flow charts that follow.

2 General coverage guidelines Home oxygen is covered and paid by Medicare if all of the following conditions are met: 1. The patient has a severe lung disease hypoxia-related symptoms that the physician has determined may improve with oxygen therapy. 2. The patient s blood gas study meets qualifying oxygen levels. 3. The treating physician tried considered alternative treatment measures and determined them to be ineffective. Medicare will deny oxygen f patients with the following conditions: Angina pectis in the absence of hypoxemia dyspnea without c pulmonale evidence of hypoxemia Severe peripheral vascular disease resulting in clinically evident desaturation in one me extremities but in the absence of systemic hypoxemia Terminal illnesses that do not affect the respiraty system Medicare may cover oxygen f patients enrolled in certain CMS approved clinical trials. Qualifying arterial blood gas studies The term blood gas study in this Helpful Hints document refers to both an ABG test and an oximetry test. A qualified physician, labaty, independent diagnostic testing facility (IDTF) must perfm the blood gas study. A DME supplier may not perfm pay f the qualifying blood gas study (this exclusion does not apply to blood gas studies perfmed by a hospital certified to do tests). If an ABG and an oximetry test are both perfmed on the same day under the same conditions (i.e., at rest/awake, during exercise, during sleep), rept the PO 2 from the ABG on the CMN. If the ABG PO 2 result at rest (awake) is not a qualifying value, but an exercise sleep oximetry test on the same day is qualifying, the oximetry test will be used to determine coverage. If an oximetry measurement is taken during sleep, the patient must meet the qualifying oxygen saturation level f at least five minutes. The qualifying five-minute reading does not have to be continuous. The qualifying study may be perfmed while the patient is on oxygen as long as the repted blood gas values meet the Group I Group II criteria. Medicare has the discretion to request a repeat blood gas at any time. The blood gas study must be perfmed accding to the following guidelines: 1. The qualifying blood gas study is perfmed by a physician by a qualified provider supplier of labaty services. 2. If the test is perfmed during an inpatient hospital stay, the repted test must be the test perfmed closest to, but no earlier than, two days pri to the discharge. 3. If the test is not perfmed during an inpatient hospital stay, the repted test must be perfmed while the patient is in a chronic stable state (not during an acute illness exacerbation of his her underlying disease). 4. F sleep oximetry studies, the oximeter provided to the patient must be tamperproof and must have the capability to download data that allows documentation of the duration of oxygen desaturation below a specific value. Home sleep oximetry studies Beneficiaries may self-administer home-based overnight oximetry tests under the direction of a Medicare-enrolled Independent Diagnostic Testing Facility (IDTF). A DME supplier another shipping entity may deliver a pulse oximetry test unit and related technology, used to collect and transmit test results to the IDTF, to a beneficiary s home under the following circumstances: 1. The beneficiary s treating physician has dered an overnight pulse oximetry test befe the test is perfmed. 2. The test is perfmed under the direction and/ instruction of a Medicare-approved IDTF. Because it is the beneficiary who self-administers this test, the IDTF must provide clear written instructions to the beneficiary on proper operation of the test equipment and must include access to the IDTF in der to address other concerns that may arise. The DME supplier may not create this written instruction, provide verbal instructions, answer questions from the beneficiary, apply demonstrate the application of the testing equipment to the beneficiary, otherwise participate in the conduct of the test. 3. The test unit is sealed and tamperproof such that test results cannot be accessed by anyone other than the IDTF who is responsible f transmitting a test rept to the treating physician. The DME supplier may use related technology to download test results from the testing unit and transmit those results to the IDTF. In no case may the DME supplier access manipulate the test results in any fm. The IDTF must send the test results to the physician. The IDTF may send the test results to the supplier if the supplier is currently providing, has an der to provide, oxygen other respiraty services to the beneficiary if the beneficiary has signed a release permitting the supplier to receive the rept. Oximetry test results obtained through a similar process while the beneficiary is awake, either at rest with exercise, may not be used f purposes of qualifying the beneficiary f home oxygen therapy.

3 Medicare determines coverage of home oxygen based on the patient s blood gas test results. Results are categized into three defined groups shown in the following flow charts. Group I Patient has arterial PO 2 55 mm Hg OR arterial oxygen saturation 88% taken at rest (awake). Patient has arterial PO 2 55 mm Hg OR arterial oxygen saturation 88% f at least 5 minutes, taken during sleep AND demonstrates arterial PO 2 56 mm Hg OR arterial oxygen saturation 89% while awake. Patient has a decrease in arterial PO 2 > 10 mm Hg, OR a decrease in arterial oxygen saturation > 5%, f at least 5 minutes, taken during sleep that is associated with symptoms attributable to hypoxemia. Patient meets the Group I criteria. Initial coverage is limited to 12 months OR other length of need if specified by the physician, whichever is shter. Patient has arterial PO 2 55 mm Hg OR arterial oxygen saturation 88% taken during exercise AND demonstrates arterial PO 2 56 mm Hg OR arterial oxygen saturation 89% during the day while at rest.* * In this case, oxygen is provided f during exercise if it is documented that the use of oxygen improves the hypoxemia that was demonstrated during exercise when the patient was breathing room air. Group II Patient has arterial PO 2 of mm Hg OR an arterial blood oxygen saturation of 89% at rest (awake), during sleep f at least 5 minutes, OR during exercise (as described under Group I criteria). and one of the following Patient has dependent edema suggesting congestive heart failure. Patient has pulmonary hypertension c pulmonale, determined by measurement of pulmonary artery pressure, gated blood pool scan, echocardiogram, P pulmonale on EKG (P wave > 3 mm in standard leads II, III, AVF). Patient has erythrocythemia with a hematocrit > 56%. Patient meets the Group II criteria. Initial coverage is limited to 3 months OR other length of need if specified by the physician, whichever is shter.

4 Group III Group III includes patients with arterial PO 2 levels 60 mm Hg OR arterial blood oxygen saturation levels greater than equal to 90%. Coverage f Group III patients is decided on a case-by-case basis. Medicare states however, that there is a rebuttable presumption of non-coverage meaning that the claims are typically denied based on lack of medical necessity. Additional physician documentation would be required f coverage consideration. Medicare payment f oxygen and oxygen equipment Medicare payment f oxygen and oxygen equipment is made on a monthly basis. One bundled monthly payment amount is made f all covered stationary equipment, stationary and ptable contents, and all accessies used in conjunction with the oxygen equipment. An add-on payment may also be made f those beneficiaries who require ptable oxygen if the patient does not need me than 4 LPM. Medicare payment f oxygen equipment will not continue beyond 36 months of continuous use. After the 36 month rental cap, Medicare will continue to make monthly rental payments f oxygen contents. Payment is made on a monthly basis f oxygen contents f beneficiaries with liquid gaseous oxygen equipment. Up to three months of contents can be delivered at one time. However, payment will be made monthly f one month at a time. F example, three months of contents are delivered on June 1. The supplier would bill Medicare f those contents on June 1, July 1, and August 1. Coding guidelines f equipment and accessies HCPCS code Equipment Description E0424 Stationary compressed gaseous oxygen Includes container, contents (per unit), regulat, flowmeter, system, rental humidifier, nebulizer, cannula mask, and tubing E0425* Stationary compressed gas system, purchase Includes regulat, flowmeter, humidifier, nebulizer, cannula mask, and tubing E0430* Ptable gaseous oxygen system, purchase Includes regulat, flowmeter, humidifier, cannula mask, and tubing E0431 Ptable gaseous oxygen system, rental Includes ptable container, regulat, flowmeter, humidifier, cannula mask, and tubing E0433 Ptable liquid oxygen system, rental Home liquefier used to fill ptable liquid oxygen containers, includes ptable containers, regulat, flow meter, humidifier, cannula mask and tubing, with without supply reservoir and contents gauge E0434 Ptable liquid oxygen system, rental Includes ptable container, supply reservoir, humidifier, flowmeter, refill adapt, contents gauge, cannula mask, and tubing E0435* Ptable liquid oxygen system, purchase Includes ptable container, supply reservoir, flowmeter, humidifier, contents gauge, cannula mask, tubing and refill adapt E0439 Stationary liquid oxygen system, rental Includes container, contents, regulat, flowmeter, humidifier, nebulizer, cannula mask, and tubing E0440* Stationary liquid oxygen system, purchase Includes use of reservoir, contents indicat, flowmeter, humidifier, nebulizer, cannula mask, and tubing E0441 Oxygen contents, gaseous, per unit F use with owned gaseous stationary systems when both a stationary and ptable gaseous system are owned; one month s supply = 1 unit E0442 Oxygen contents, liquid, per unit F use with owned liquid stationary systems when both stationary and ptable liquid system are owned; one month s supply = 1 unit E0443 Ptable oxygen contents, gaseous, per unit F use only with ptable gaseous systems when no stationary gas liquid system is used; one month s supply = 1 unit E0444 Ptable oxygen contents, liquid, per unit F use only with ptable liquid systems when no stationary gas liquid system is used; one month s supply = 1 unit E1390 Oxygen concentrat single delivery pt Single delivery pt, capable of delivering 85% greater oxygen concentration at the prescribed flow rate, each E1391 Oxygen concentrat dual delivery pt Dual delivery pt, capable of delivering 85% greater oxygen concentration at the prescribed flow rate, each *Only rented oxygen systems are eligible f Medicare coverage.

5 Coding guidelines f equipment and accessies (continued) HCPCS code Equipment Description E1392 Ptable oxygen concentrat, rental Reimbursement at the standard ptable system add-on rate, provided medical necessity f a ptable oxygen system is met E1405 Oxygen and water vap system Reimbursement not subject to DME ceiling flo payment amounts E1406 Oxygen and water vap enriching system without heated delivery Reimbursement not subject to DME ceiling flo payment amounts K0738 Ptable gaseous oxygen system, rental Home compress used to fill ptable oxygen cylinders; includes ptable containers, regulat, flowmeter, humidifier, cannula mask, and tubing Accessies are included in the monthly rental payment f oxygen. Separate payment f accessies may be made ONLY once the five-year useful life of the equipment has been reached. HCPCS code Accessy HCPCS code Accessy A4606 Oxygen probe f use with oximeter device, replacement E0455 Oxygen tent, excluding croup pediatric tents A4608 Transtracheal oxygen catheter, each E0555 Humidifier, durable, glass autoclavable plastic bottle type, f use with regulat flowmeter A4615 Nasal cannula E0580 Nebulizer, durable, glass autoclavable plastic bottle type, f use with regulat flowmeter A4616 Oxygen tubing, per foot E1353 Regulat A4617 Mouthpiece E1354 Oxygen accessy, wheeled cart f ptable cylinder ptable concentrat, any type, replacement only, each A4619 Face tent E1355 Stand/rack A4620 Variable concentration mask E1356 Oxygen accessy, battery pack/ cartridge f ptable concentrat, any type, replacement only, each A7525 Tracheostomy mask, each E1357 Oxygen accessy, battery charger f ptable concentrat, any type, replacement only, each A9900 Miscellaneous supply, accessy and/ service component of another HCPCS code (may be used to rept accessies such as oxygen conserving devices) E1358 Oxygen accessy, DC power adapter f ptable concentrat, any type, replacement only, each HCPCS modifiers: The appropriate modifiers must be included on oxygen claims f flow rates less than 1 LPM greater than 4 LPM. Do not include modifiers on claims f ptable systems oxygen contents. QE Prescribed oxygen is < 1 LPM QF Prescribed oxygen is > 4 LPM and ptable oxygen is also prescribed QG Prescribed oxygen is > 4 LPM and ptable oxygen is not prescribed QH Oxygen conserving device is being used with an oxygen delivery system Certificate of Medical Necessity (CMN) documentation guidelines and requirements The DME supplier must keep a physician s der on file. The der must be signed and dated by the treating physician, specifying the oxygen delivery system and accessies. The CMN may be used as the physician s der if it contains the details of the oxygen der (delivery system, flow rate, etc.)

6 Initial certification requirements The initial claim filed to the DME MAC A break in medical necessity of at least 60 days Group I patients with length of need less than equal to 12 months failing to have repeat blood gas study pri to revised certification recertification Group II patients failing to have repeat blood gas studies between 61st and 90th day Change in supplier due to an acquisition Reasonable useful lifetime of pri equipment has been reached Equipment has been irreparably damaged, stolen lost Required f new patients placed on oxygen Required f patients that have been on home oxygen pri to qualifying f Medicare Required f patients switching from a Medicare Advantage plan to Medicare fee-f-service The break in medical necessity would also include the days remaining in the month in which the interruption began. This does not include break in billing (i.e. patients in hospitals, nursing home, etc.) f patients who continue to need oxygen. If qualifying study is subsequently perfmed, a new CMN is required. The initial date of the new CMN is the date of the subsequent qualifying blood gas study. If a qualifying blood gas study is obtained after the 90th day, a new CMN is required. The initial date of the new CMN is the date of the subsequent qualifying blood gas study. If the previous supplier did not file a recertification when it was due and requirements f recertification were not met at that time. The initial date of the new CMN is the date of the subsequent qualifying blood gas study. Replacement equipment is required A new blood gas test is not required Irreparable damage refers to a specific accident natural disaster like a fire flood and does not refer to nmal wear and tear A new blood gas test is not required Blood gas study (1) must be the most recent study perfmed pri to the initial date on CMN and (2) must be perfmed within 30 days pri to the initial date of CMN. F patients who were on oxygen through a managed Medicare plan and are switching to Medicare fee-f-service, the blood gas study does not have to be obtained 30 days pri to the initial date of the CMN, but it must be the most recent test obtained while enrolled in the Medicare Advantage plan. Recertification requirements Used to indicate continued oxygen need after initial CMN period. Physician must re-evaluate patient within 90 days befe recertification date. Group I: 12 months after the initial claim Recertifications are required with the 13th-month claim. Blood gas study must be the most recent study perfmed pri to the recertification date. If patient with a lifetime length of need was not re-evaluated by the physician within 90 days befe the 12-month recertification, but was subsequently seen, the date on the recertification CMN should be the date of the physician visit. Group II: 3 months after the initial claim Recertifications are required with the 4th-month claim. Blood gas study must be the most recent study perfmed between the 61st and 90th day after the initial date. At the discretion of the DME MAC Blood gas study must be the most recent perfmed 30 days pri to the recertification date. Change in supplier due to an acquisition If the previous supplier did not file a recertification when it was due but requirements f recertification were met when it was due. Recertification date would be 3 12 months after the initial claim depending on whether the patient was initially Group I II. Revised certification requirements Used to indicate a change in patient s condition requiring a change in oxygen prescription delivery system. Change in oxygen prescription A repeat blood gas study is required if the der changes from group I and II to group III. I. < 1 LPM II. 1-4 LPM III. > 4 LPM Blood gas study must be perfmed with patient on 4 LPM within 30 days pri to the start date of categy 3. Ptable system is added after initial certification of stationary system Blood gas study is not required unless the initial qualifying test was perfmed while patient was sleeping. Study must be perfmed while patient is at rest (awake) during exercise within 30 days befe the revised date. If conditions f a revised certification and a recertification are met at the same time, the CMN should be filed as a recertification.

7 Revised certification requirements (continued) Used to indicate a change in patient s condition requiring a change in oxygen prescription delivery system. Stationary system is added after initial Repeat blood gas study not required. certification of a ptable system Length of need, as specified by physician, expires Patient has new treating physician (prescription remains unchanged) Blood gas study must be the most recent perfmed 30 days pri to the revised date. Repeat blood gas study is not required. Revised CMN is not required with claim but should be retained in supplier s files. If conditions f a revised certification and a recertification are met at the same time, the CMN should be filed as a recertification. Other documentation requirements Under the following conditions, a new der must be obtained and kept on file by the supplier. Neither a new CMN n a repeat blood gas study is required. Change in prescribed oxygen level that remains within one of the following categy ranges: I. < 1 LPM II. 1-4 LPM III. > 4 LPM Change from one type of oxygen delivery system to another (gaseous, liquid, concentrat). However, a new CMN der is not required when switching between standard ptable oxygen cylinders (E0431) and ptable cylinders filled from a home compress (K0738). -EY modifier Claims f oxygen submitted to the DME MAC, befe a signed and dated der is on file with the supplier, must include an -EY modifier attached to each affected HCPCS code. Additional coverage guidelines Ptable oxygen systems Patient must be mobile in the home. Qualifying blood gas study must be done while patient is at rest (awake) during exercise. Coverage will be denied if qualifying test was done while patient was sleeping. If qualifying criteria are met, a ptable oxygen system is separately payable in addition to a stationary system. Greater than 4 LPM A higher payment allowance may be established if qualifying blood gas study is perfmed while the patient is on 4 LPM. Payment will not be made f both a ptable system and allowance f greater than 4 LPM. If both are billed in the same month, the ptable system will be denied as being not separately payable. Stationary oxygen contents Contents are only reimbursable once the 36-month payment cap on the equipment has been reached. A higher payment allowance may be established if qualifying blood gas study is perfmed while the patient is on 4 LPM. Payment will not be made f both a ptable system and allowance f greater than 4 LPM. If both are billed in the same month, the ptable system will be denied as being not medically necessary. Ptable oxygen contents Contents are only reimbursable once the 36-month payment cap on the equipment has been reached. Contents f a ptable system can only be reimbursed f systems that actually require content delivery. There is no reimbursement f contents f oxygen-generating ptable systems such as ptable oxygen concentrats liquid/gas in-home oxygen generating systems. The supplier is required to provide whatever quantity of oxygen the patient uses. Medicare reimbursement levels will remain the same regardless of the quantity of oxygen dispensed by the supplier. Travel oxygen It is the beneficiary s responsibility to arrange f oxygen when traveling outside of their supplier s usual service area. Medicare will only pay one supplier f a patient s oxygen during any one rental month. Oxygen services furnished by an airline are considered noncovered by Medicare and are the responsibility of the beneficiary, not the supplier. Maintenance and Servicing Fee Payment F oxygen equipment, other than stationary ptable gaseous liquid oxygen equipment (furnished on after July 1, 2010), a maintenance and servicing fee is paid every six months, either beginning six months after the 36th paid rental month when the item is no longer covered under the supplier s manufacturer s warranty (whichever is later). Noncovered items/services: Emergency/stand-by oxygen systems Topical hyperbaric oxygen chambers (HCPCS A4575) Oximeters (HCPCS E0445) and replacement probes (A4606) NOTE: Inclusion exclusion of a procedure, specific product, supply code does not imply any health insurance coverage reimbursement policy. This infmation should not be considered to be either legal reimbursement advice. Given the rapid and constant change in public and private reimbursement, Philips Respironics cannot guarantee the accuracy timeliness of this infmation and urges you to seek your own counsel and experts f guidance related to reimbursement, including coverage, coding and payment.

8 Philips Healthcare is part of Royal Philips Electronics How to reach us Asia Europe, Middle East, Africa Latin America Nth America (toll free, US only) Philips Respironics 1010 Murry Ridge Lane Murrysville, PA Customer Service (toll free, US only) Philips Respironics International Headquarters Philips Respironics Asia Pacific Philips Respironics Australia +61 (2) Philips Respironics China Philips Respironics Deutschland Philips Respironics France Philips Respironics Italy Philips Respironics Sweden Philips Respironics Switzerland Philips Respironics United Kingdom F me infmation from Philips Respironics Reimbursement Customer service Website Infmation and fee schedules Educational materials and questions (coding, coverage and payment) ; listen to the instructions and follow prompts to select the insurance reimbursement infmation option respironics.com Respironics is a trademark of Respironics, Inc. and its affiliates. All rights reserved. Please visit Koninklijke Philips Electronics N.V. All rights are reserved. Philips Healthcare reserves the right to make changes in specifications and/ to discontinue any product at any time without notice obligation and will not be liable f any consequences resulting from the use of this publication. CAUTION: US federal law restricts these devices to sale by on the der of a physician. Hoech WMB 07/27/11 MCI PN